I
The necessary dependence which the maintenance of these islands has on the commerce, in order that the Spaniards may maintain themselves in them; and the benefit from the charitable funds, in which are annually expended 75,000 pesos—which sum proceeds from the trading of the 150,000 pesos which are carried in the annual galleon on account of the said charitable funds.
II
That if the prohibition of the stuffs and other commodities from China remains, their former control of the trade therein will be disturbed, and the royal decrees issued for this purpose (some of which are compiled[18]) will be subverted—such as those which command that the commodities which they convey shall be bought from the Sangleys; and that if this [Chinese] commerce is prohibited that of Nueva España becomes unprofitable, as the bulky commodities do not fill up the amount of the permitted trade, and it will not be possible to pay the cost of traffic in them without those from China.
III
That for the maintenance of these islands, the support of the Spaniards, and the success of the charitable funds, it is necessary that the amount permitted be increased to 500,000 pesos and a million of returns, with the inclusion of the fabrics from China.
IV
The regulation of the lading, in order to avoid infractions of the law [is necessary]; as also that the dubious and burdensome obligation of making sworn declarations be laid aside, and that the quality and number of the commodities which are transported must appear in the registers.
79. [These points made by the fiscal are discussed at length by him in a report addressed to the king, dated November 15, 1722. Among other things, he states that the merchants prefer one galleon of 800 or 900 tons burden to two of 500 tons each, as being less expensive (on account of requiring fewer officers and men), safer (as carrying larger cannon) and less exposed to danger from either enemies or storms, than the two smaller vessels; that the industry and love of gain displayed by the Chinese who reside in the islands have secured to them the control of all the crafts and useful arts, and of the commerce of the islands save that with Nueva España, which is therefore the only resource of the Spanish citizens; that the current rate of income[19] is but five per cent in the islands, while that commerce brings in fifty per cent; that most of the rural estates [haciendas] are possessed by the religious orders; that houses constitute property of little value, on account of the frequent fires and earthquakes; and that consequently the charitable foundations [obras pias] have been necessarily based on the Acapulco trade. It is also declared that the annual situado from Mexico amounts to no more than 50,000 or 60,000 pesos, while the annual budget of the government expenses amounts to 500,000 pesos, which the royal treasury of the islands must pay from the proceeds of the duties on merchandise. The request of the Manila citizens for a permission to send 500,000 pesos’ worth, in 3,500 piezas, is very moderate; as the trade has been conducted, the 300,000 pesos’ worth has made 4,798 piezas, for the last five years—which is evidence of the infractions of law which have been committed in that commerce. Moreover, the proposition of the city that the duties belonging to the crown be levied on the number of the piezas, will be likely to prevent many of the frauds which are now practiced in this direction. The fiscal opposes the request of the city that the seamen be allowed an increase of the small amount already allowed them, free from duties, for investment on their own account, declaring that it will but increase the illegal trade already prevalent, and that the proposition to allow them 40,000 pesos’ worth of trade (with twice that amount in returns for the merchandise) would allow the seamen a greater investment than even the citizens, since the former average only 115 men to each galleon. He advises that the officers of the ships be permitted to have a share in the lading of the ship, in place of their present wages; and that one large galleon be occupied in the trade to Acapulco, rather than two small ones. He reminds the king of the opening afforded by the trade between Manila and China for the conversion of the Chinese and the entrance of the gospel into that heathen empire.]
80. [The treasury officials at Manila also write, seconding the proposal to despatch one large galleon; and they add that the royal exchequer of the islands will be ruined if the decree of 1720 is enforced, “for the commerce would cease, and consequently the royal duties which it was producing.”]